Like most Retirement Village operators, St Ives has a Deferred Management Fee (DMF) model in place, which is a way for incoming resident residents to pay part of their costs after they move out – saving residents money upfront so they have more to spend on enjoying their lifestyle during their stay. This is a model unique to the retirement living industry.
The model is made up of three cost units.
1 – Ingoing ContributionÂ
On moving into one of our retirement living communities you will pay a price for your home, determined by its size, location of the retirement village, market conditions, and a lot of other factors – just as you would for any real estate purchase.
2 – A monthly common services fee.
During your stay, you’ll pay a monthly ‘common services’ fee, which helps cover the running costs of the Village and amenities and keep everything maintained to a very high standard. Please note this does not include your other services, such as telephone, internet, electricity and contents insurance. The monthly common services fee varies across Villages, depending on what amenities are on offer. When reviewing the monthly fee, consider the fact that you probably already pay an equal amount in rates, upkeep and lifestyle costs.
3 – The outgoing costs.
When you leave your Village, you will be required to pay the below costs.
- The DMF, which is calculated as a percentage of the outgoing sales price. Remember how you paid less than comparable real estate in the area as part of the ongoing contribution? Well, here is where that gap is paid – this is why it is called a ‘deferred’ fee. The longer you are in a Village, the higher the DMF will be. All details of the DMF can be found in your contract and will be carefully explained by our friendly team before you move in.
- A refurbishment fee to bring your home back to its near original state. This helps raise the potential sales price of your home and makes it more attractive to potential. The refurbishment may include new kitchens, benchtops and tiling – just as you would do when selling any home.
- Fees associated with selling your home. St Ives Realty will market your home for sale and help negotiate the best price possible. This will involve paying a commission and other fees, such as marketing costs, just as it does for any real estate sale.
Looking for more information?Â
More information on this model, as well as examples of the costs, can be found here.
A great short video explaining retirement living costs can be viewed here.
A comparison of retirement living costs versus other options is available here.
Some food for thought around ongoing life costs versus your current living costs can be read here.